Marian Harkin (Sligo-Leitrim, Independent)
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105. To ask the Minister for Finance the reason paramedics and EMTs are unable to claim flat rate expenses towards uniforms and other expenses incurred in carrying out their duties as is the case for a wide range of occupations, such as firefighters, doctors, nurses, healthcare assistants, physiotherapists and so on; if paramedics and EMTs will be included on the list for same; and if he will make a statement on the matter. [5425/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The flat rate expense (FRE) regime is operated by Revenue on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the Taxes Consolidation Act (TCA) 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.

The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary. Revenue has advised me that it will consider FRE applications where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer. Applications are generally made by the representative bodies in the employment sectors concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied statutory requirement for a tax deduction.

The Deputy will be aware that Revenue recently announced its decision to defer the implementation of any planned changes to the FRE regime until 1 January 2021, pending the outcome of a review relating to the tax deductibility of expenses in employment by the Tax Strategy Group (TSG). The TSG, which is overseen by my Department, will examine policy and legislative options relating to a number of aspects of the current eligibility requirements for entitlement to tax relief for expenses incurred in employment. Notwithstanding this review, I understand Revenue is willing to engage with representative bodies of any large groups of employees, including staff of the National Ambulance Service, to consider an application for flat rate employment expenses.

I am advised by Revenue that it remains committed to the FRE regime and encourages all taxpayers to avail of their full tax relief entitlements. The Deputy will be aware from previous replies to questions about the FRE regime that, outside of the regime, all employees retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent which the expenses are not reimbursed by the employer.